Mortgage Application Payments Remain Flat In February

Homebuyer affordability remained flat in February with the national median payment applied for by purchase applicants remaining unchanged at $2,205 in February. This is according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).

“Homebuyer affordability conditions remained unchanged in February as many homebuyers continue to weigh their options on entering the housing market amid economic uncertainty and slowly declining mortgage rates,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “While February’s data reflects little movement, we do expect that rising housing inventory, coupled with lower mortgage rates, will spur additional activity in the housing market.”

An increase in MBA’s PAPI – indicative of declining borrower affordability conditions – means that the mortgage payment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings. A decrease in the PAPI – indicative of improving borrower affordability conditions – occurs when loan application amounts decrease, mortgage rates decrease, or earnings increase.

The national PAPI (Figure 1) increased 0.1 percent to 166.2 in February from 166.1 in January. Median earnings were up 5.0 percent compared to one year ago, and while payments increased 1.0 percent, the significant earnings growth means that the PAPI is down 3.8 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment decreased to $1,506 in February from $1,519 in January.

The Builders’ Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey decreased to $2,463 in February from $2,531 in January.

Additional Key Findings of MBA’s Purchase Applications Payment Index (PAPI) – February 2025

  *   The national median mortgage payment was $2,205 in February 2025—unchanged from January. It is up by $21 from one year ago, equal to a 1.0% increase.
  *   The national median mortgage payment for FHA loan applicants was $1,907 in February, down from $1,934 in January and up from $1,872 in February 2024.
  *   The national median mortgage payment for conventional loan applicants was $2,226, up from $2,225 in January and up from $2,194 in February 2024.
  *   The top five states with the highest PAPI were: Idaho (252.5), Nevada (241.8), Rhode Island (224.7), Arizona (222.9), and Tennessee (209.4).
  *   The top five states with the lowest PAPI were: Louisiana (121.9), Connecticut (125.0), North Dakota (126.1), New York (131.3), and Oklahoma (132.1).
  *   Homebuyer affordability marginally decreased for Black households, with the national PAPI increasing from 157.3 in January to 157.4 in February.
  *   Homebuyer affordability remained constant for Hispanic households, with the national PAPI remaining unchanged from January to February at 158.8.
  *   Homebuyer affordability remained constant for White households, with the national PAPI remaining unchanged from January to February at 169.3.